final version of the self-study document - Keuka College's Middle ...

financial picture reveals an institution which has struggled but has also made very considerable
progress toward achieving financial sustainability.
Central to a comprehensive long range strategic planning exercise, President Díaz-Herrera began
his tenure with an intensive focus on the College’s external and internal environment. At his first
annual State of the College address in November 2011, President Díaz-Herrera provided
valuable information regarding stress factors and their possible impact on the College (Appendix
I.1 State of the College 11-1-11). As part of establishing an institutional baseline, President Díaz-
Herrera applied the critical parameters developed by Martin and Samels (2008) in Turnaround:
Leading Stressed Colleges and Universities to Excellence to point out nine areas of concern
(Table 1.1 Stress Factors Summary). Although the identification of these nine areas of concern,
primarily financial stressors, did not come as a surprise to the College’s personnel, the frank
discussion of these challenges signified a new and welcome era of transparency.
Table 1.1 Stress Factors Summary
TURNAROUND 20 STRESS FACTORS Stress factor?
1. Tuition Discounting more than 35 percent YES-1
2. Tuition dependency of more than 85% YES-2
3. Student default rate above 5% (paying back fed. loans) NO
3 Alternate: Bad debt write off greater than 10% YES-3
4. Debt Service more than 10% operating budget NO
5. Less than 1:3 ratio between endowment & operating budget YES-4
6. Average tuition rate increase greater than 8% NO
7. Deferred maintenance at least 40% unfunded YES-5
8. Short-term bridge financing in 4 th quarter NO
9. Less than 10% of operating budget dedicated to technology YES-6
10. Average alumni gift is less than $75 and fewer than 20% give
annually
11. Institutional enrollment of 1000 students or fewer NO
12. Conversion yield 20% behind primary competitors NO
YES-7
13. Student retention 10% behind primary competitors YES-8
14. Institution on probation, warning or financial watch with accreditor – but
it was just two years ago.
15. The majority of faculty do not hold terminal degrees (73% of full time
faculty hold terminal degrees; majority of adjuncts do not)
16. Average full time faculty is 58 or higher NO
NO
YES-9
Page 3 of 8 Introduction